Common use of Funding for Initial Term Clause in Contracts

Funding for Initial Term. Execution of the Contract by HUD is an obligation of HUD of $ _______________, an amount sufficient to provide housing assistance payments for approximately ____________ months of the first annual increment of the Contract term. HUD will provide additional funding for any remainder of the first annual increment and for subsequent annual increments, including any remainder of such subsequent annual increments, subject to the availability of sufficient appropriations. When such appropriations are available, HUD will obligate additional funding and provide the Owner written notification of (i) the amount of such additional funding, and (ii) the approximate amount of time within the Contract term to which it will be applied.

Funding for Initial Term. Execution of the HAP Contract by HUD is an obligation of HUD of $ _______________, an amount sufficient to provide housing assistance payments for approximately ____________ months of the first annual increment of the HAP Contract term. HUD will provide additional funding for any remainder of the first annual increment and for subsequent annual increments, including any remainder of such subsequent annual increments, subject to the availability of sufficient appropriations. When such appropriations are available, HUD will obligate additional funding and provide the Owner written notification of (i) the amount of such additional funding, and (ii) the approximate amount of time within the HAP Contract term to which it will be applied.